to be coded as proper and more monitoring to ensure that county offices coding coding of payments is supported by documentation could help to reduce these error rates now if you can believe it this is still a big improvement over previous audits between nine hundred ninety nine and two thousand and five the agricultural department gave away one point one billion to more than one hundred seventy thousand people crazy stuff i marinate it will see you back here at eight o'clock have a good night. little worse you're going to look a little like the. radio guy. what . if you've never seen anything like that.

i am an expert as are last week rumors abound it as bro was going to educate is a new monopoly board game without j.l. finally down the daters thought it was going to reflect the real world of american oligarch of capitalism or there is no such thing as jail for the elite players. but no the wall street journal report was wrong typically as rose said there would in fact be jail in the game of monopoly version as there always has been jail now for more on this return to stacy herbert yes max because hasbro even a game justice is sacrosanct they are saying of course there's no such thing as

having no jail in monopoly now the reason why they they have a new game coming out is because apparently young people don't have the attention span to spend more than half an hour in a team so they're trying to shorten and that was one of the ways it's just get rid of jail but you know it also gave away i think the wall street journal how they see the game being played by the players on wall street is that they don't have a have to go to jail so we see that the first headline s.a.c.'s cohen risks lose some fortune while keeping his freedom stephen a cohen founder of a fourteen billion dollar hedge fund indicted and what the u.s. calls an unprecedented insider trading scheme faces a future without a fund or a multibillion dollar fortune on the other hand he won't be behind bars oh yeah well steve you go into the you know version of the monopoly board where there is no jail you see steve biko mistake and he's making it real he's doing he's doing it

but you know he doesn't want to jail steve biko and you know he's got he's re-inventing the game you see that stuff that you know there's general out here somewhere go to jail belittle you there go to jail you know in case you don't get a good view of this is right there you know go to jail steve you going ok this is no jail me and that's not free market cap continue please well of course the u.s. attorney general in new york says that you know cohen himself wasn't charged unlike at least eight former essay c. fund managers and analysts who have faced or are facing fraud charges for their roles in a scheme which alleged. really involved more than twenty companies and went back as far as one thousand nine hundred nine so here they have a classic case of rico they could charge with rico but they're saying here like most of us trading floor we're all engaged in insider trading schemes you know this is like approaching al capone and al capone saying i had no idea all the guys

working for me were thugs and murderers and running out the hall and drugs and all sorts of other stuff. out there connecticut it is the rule book here steve biko and blood by the stink and wrote what i'd like to be done in a little bundle played by no stinking rules then i want is the monopoly with real estate portfolio all i need to do is borrow a future line dollars riskless link for free from the federal reserve buy all the stuff then charge everybody read because i'm a rent seeking fool i'm an oligarch i'm jamie don't you know the student who was there for other people up that's my version of the noblest suckers well you know it would be a game wouldn't last very long that's a very good way to make a very short is that one of two players only one doesn't have to stop it go to jail. and the other one doesn't get to stop on the two hundred dollars two hundred dollars pass go like the ordinary person never even passes go they don't

pass code because they don't get to collect the two hundred dollars not now let me let me just stop you there first and i could go as you're making an excellent point the average person does not collect their two hundred dollars i mean yes sure they're on food stamps and just sure they're on benefits of some order or another in america is becoming an oligarch to see you know kind of rotten old. but for the vast majority of wall street bankers they just get this free money they get the money they get the free money that they're given these subsidies from the federal reserve they don't pay any interest on this money that they take they are in fact leeching the system of all the possible financial integrity and they're doing so with the reckless abandon without any rules or kind of inherent to laws whatsoever like stevie cohen of s.t.c. capital is demonstrating they're just free money no laws well in fact monopoly is kind of perpetuating a myth that all of us can participate in the same game board because what it is is yes the average american will collect two hundred dollars a month in food stamps where the likes of stevie cohen or you know jamie diamond or

lloyd blankfein or any other banker connected group halliburton halliburton just a. minute to destroying evidence in the deepwater horizon the gulf of mexico oil spill they admitted to it and all they're having to pay is a two hundred thousand dollars fine avoiding jail not being criminally prosecuted and the other normal person would go directly to jail sit this the next the rest of your life out essential but you know they collect the bankers will collect hundreds of millions two hundred million two hundred billion two hundred trillion in subsidies and bailouts right the average schmoe gets that two hundred dollar food stamp to go to wal-mart to buy some baby formula for their screaming little american to a baby but most of the other bankers are the. where they're getting two hundred billion dollars freebies by just going around the board everyone else is trapped is trapped in his little houses and their trucks in these little units these little

ghettos of american ghettos the american ghetto because you know and they give a little thing to the little guys are going to vegas and roll the dice maybe you'll make a million dollars but you give us fifty thousand dollars an hour because when we got here the casino bill a i mean you dropped it right there but there's now a new special dice because or die a guess because people don't have the attention span these little babies on two hundred dollars worth of food stamps a month they don't have the attention span and stephen participate because why they don't need to participate because they're not going to ever collect the two hundred dollars free money for real now they're just trapped on this board like a hamster board they should make this monopoly for hamsters and that should be a very good selling product for many of these people but prosecutors again stevie cohen are charging him on civil fraud charges so money laundering that they commingle the profits with his own so his nine billion dollar fortune is at stake they could possibly seize it all but when so many people from a single hedge fund have engaged in insider trading it is not

a coincidence barrayar said today's indictment is not just a narrative of names and numbers it is more broadly an account of a firm with zero tolerance for low returns but seemingly tremendous tolerance for questionable conduct he said so s. a c. over time became a veritable magnet for market cheaters but you could say that max about the entirety of wall street the entirety of the corporate culture it becomes a magnet for market cheaters whether it's you know in the energy markets in california which are one of the biggest magnets it seems like it's a you know black hole of draws in all the market fraudsters and never stops nobody closes that black hole but the entire system is like well let's talk about cohen's commingling for a second he'll have a pile of money that's given to him through the repo market through the federal reserve you know get some real estate that he acquired through some ill gotten gain some scheme he's got here and it's big fun. and over there is a c. capital and then we'll take a bet with this money and he'll make a bet let's say on the end you know up or down and it put some money on the bet

like this if he's right they need takes the money back and says oh that's my money that's my money i made a winner but if it's a losing bad he says oh you lost your money you're a loser oh sorry you're a loser let's make another bet i'm going to bet that the dow jones is going to go higher you're up at this moment money let's see if it works out of dow jones goes i hope that's my money oh i made more money or dow jones goes down sorry that was your money that's your bet oh no you keep it you keep the loser oh you keep the loser see it's all of the winners i keep in the micro mailings game the losers you keep all by the way you develop by the government go see the government go see barack obama look at your obamacare go get your obama phone take the money from about i got the winners you get the losers well speaking of you know keeping the winners and getting rid of the losers and the threat of jail here's a headline j.p. morgan to sell commodities business move comes amid regulatory scrutiny of wall street the largest u.s. bank is getting out of the power plant and warehouse business amid heightened

regulatory scrutiny of wall street's ownership of such assets so you put go to jail on the monopoly board called the us economy then these guys stop committing fraud jamie shrugged. morgan shrugged there's another example in other words they were going to apply the rule of law to jamie dimon and j.p. morgan so why do we said well no i want to be in that business i don't want to be in any business right to adhere to the rule of law if i have to here the rule of law i'm getting out of the business life masters under the bus all that money is mine yes all the risk is yours low not for me law for you lot not for me oh you're going to plot a lot of me oh i'm going to do my atlas shrugged oh i pretend i'm a free market capitalist i pretend that i'm actually for fair play you know i've been stealing leaching skull that would still the nickel off line. mother gold teeth out so for a book of like good to jamie diamond retrograde moron well you know since two thousand and three since the federal reserve and congress allowed this to happen

for banks to get involved in the physical commodities market which they have always been prevented from doing but then they were allowed to get in j.p. morgan spent many many many billions becoming the number one in the world that the top natural gas they control the natural gas market they control number they owned half of all of the copper in the warehouses in london at one point and j.p. morgan's two thousand and ten purchase of henry bath and sun a metal warehouse in network gave it more than seventy facilities on four continents from new orleans to singapore nearly eleven percent of the industry total and they're staying in the silver and gold market though well they're horizontal integrated is the business term for this in other words they buy up all the possible horizontal warehouses and metal shops that would give them complete total monopoly positions and monopoly pricing and then this was going to be a great way for these scoundrels and financial terrorists on wall street to print more money and then the somebody thought well maybe maybe you know it's against the

law to be a monopoly position and manipulate markets so they said no no we'll sell out of that but you say we're going to stay in the silver and gold position well but more importantly let's compare it to the first story about steve biko because his whole organization is being charged with insider trading the firm is now the reason why these firms bought up the physical commodities markets why the banks were so interested and spend billions and billions of dollars and all of their effort buying this one of traction was that such businesses allowed banks an early look at information on supply and demand they could profit by seeing the flow of raw materials and trading based on that plus their added knowledge of financial markets i.e. they were insider trading they could see before anybody else supply and demand the true supply and demand situation now the interesting thing here is that. i mention the california energy marc. it's you know j.p. morgan was just fine over four hundred million dollars for rigging those markets well senator jeff merkley democrat of oregon says every minds we have the potential

for problems that occurred when enron was both supply electricity and running electricity trading markets don't all like this like how many times does the same crime have to happen before they say let's stop it let's introduce go to jail do not leave for the next three rounds or the next three lifetimes right and just skilling was one of the architects of enron's crimes is going to be let out of jail early presumably they'll get a job at j.p. morgan so they were j.p. morgan's attempt you know to attitude toward commodities is what the n.s.a. is kind of approach through data facebook and data they want to control like a huge vacuum all the data all the information to manipulate it knowing the three hundred sixty degree full spectrum dominance of all the data so jamie diamond wants to say oh let's just control every single commodity trade out there in the world take a little piece little rent seeking well the exiting this market now because people you know you have revolutions around the world partly because since two thousand and three all the prices of oil agricultural goods copper metals everything has

risen because they've created artificial monopolies and then there were big corporations like millers corps you know bigger the beer when the bear manufacturers start complaining those guys you know out in pennsylvania are going to rise up. found out all right stay sober thanks so much for being on the kaiser report thank you max stay tuned for the second half a whole lot more. technology innovation all the developments from around russia we've got the future covered. plus that was a new alert animation scripts scare me a little bit. there is breaking news tonight and we are continuing to follow

the breaking news coming in. alexander's family cry tears of joy and great things rather that there has to be ethical render in a court of law around alaska is a story made sort of movies playing out in real life. i would rather as questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.t. question more.

welcome back to the kaiser report time now to turn to precious metals expert andrew maguire andrew welcome back to the kaiser report max it's always great to be here all right we're talking golf again and i think first i want to just ask you a question see if you agree with this you know people understand what happened back in northern rock when it collapsed there's a run on the bank and people are lined up outside the bank give me my money because there is a panic that because of the rich fractional reserve banking system that everyone's deposits are there at the same time there's a panic they go to the bank isn't this what we're seeing in the gold market isn't there are essentially a run on the london bullion markets association right now absolutely there is and that's and we've got lots of evidence for that so i mean i think you know you had

an excellent interview i know with alice mcleod on saturday which i looked at and i want to agree with everything he said i think what we try and do is try and keep it really simple as to what all this means i think what we're seeing is essentially we talked about backwardation and i think a lot of people start to glaze over when we talk about all the technicals but in simple terms what we're seeing now as evidenced in go for rates which have been described by sandy jaitley extra extremely well and people go back and look at your other interviews and look at what exactly that means technically but essentially what it means is the bullion banks right now are having to pay a premium to buy physical now that's unusual i mean we were in backwardation in go for rates for the last fifteen days and possibly it's too early to now to check but probably sixteen that's unprecedented and what it means in reality is

that there is a run on the bank the bullion banks are having to go out and pay a premium to buy bullion now given the fact there's no producer hedging going on of any song which might explain some of that really what they were saying is they're actually coming out paying a premium buying the buying bullion. to spray vibe to the market because there's a shortage of bullion with those two things going on and there's a shortage of blame going on and a lot of drivers to that if phenomenon are happening on the central bank level the big macro level but there's something else going on here which is that what you're saying here technically speaking is that for traders they could sell their spot gold today and essentially buy it back and the three month contract for a locked in arbitrage profit but because they are so uncertain that they could buy back in the future they're not even willing to pick up the free money that's being

availed to them and what this arbitrage that's backwardation that's completely abnormal that's a telltale sign of a market that's in a stress does distance dress correct that's absolute evidence i mean there's the bottom line i mean why would i in the month of july which working still in july here average about one dollar and sixty cents announce a premium spot which is the cash market in london and i'm not talking about shanghai i'm not talking about vietnam where you can get between six and one hundred dollars premiums announced i'm talking about london the global market the global marketplace because so it is a true benchmark i.e. the fix comes up this morning whatever the price is is what i can sell or buy my book in for now why as an arbitrage or why as i have a bank or a hedge fund or somebody in the profit business wouldn't i take and it's up you know up to two dollars and fifteen cents a matter of days ago but an average of a dollar sixty why wouldn't i sell two million ounces today give you money give my

bullion over take up to a two million dollar profit and not wait ninety days wait the contacts about to expire i could wait less than thirty days and get my bullion back well as you said why not. because there's no confidence that these markets like the comix eleven billion mark association are going to survive another thirty days intact as we know them you know and what i what i'd be worried about is me getting my m i believe i believe we talking a default here essential what was that that's right we're talking about the long rumored anticipated talked about default on the call max or london berlin markets association but based on market in the action the run on the bank it's either ad and right now or some another extraordinary event is about to take place well it's own now and i think you know his his the his the interesting part on the first

we saw the a.b.m. default it became public because a client of mine and i think other clients suddenly came on to the phone to the marketplace and said we're going to the press and said whoa hold a minute i can get my billion back you've got faith in a system that's been help people have said look you know go to the un two billion mark association i've got two kinds of ways of storing my gold and they steal you into not only case of contract because there's no storage costs much cheaper you know i will just give you a piece of paper that says you go this suddenly we know for years and years and years we've had suspicions about the leverage the one hundred twenty leverage of paper gold all of a sudden a.b.n. amro comes out and actually is the first album a default the very first so right now the timing on this goes back to year your witness your testimony to see have to see about the fact that these markets are are trading at one hundred to one leverage when you went in testified see if you see about the alleged manipulation the silver market it came out in testimony from the other side almost by accident that mentioned that there was one hundred to one

leverage on the l b m a which up until that nobody was really thinking about and then it seems like from their germany one of their gold in amber went into fall you really set in motion a chain reaction and you are you are the whistleblower extraordinary this space so now what. you were imagining what's going to happen if there are six months ago the era go is all happening right now some start interrupted ten year yeah so really that we have the fault now what happens is is that suddenly the fade the b.o.'s the bank of international settlements the central banks of central banks go holy smoke we have a problem we cannot afford to have a billion bank go down if there's a run now immediately you've got one default what's going to happen everyone is going to do you know the wrong thing norden or the wrong thing and wind up i want my bullion that would collapse the three major bullion banks in london which would collapse the entire global banking system as we pull in bank this is a major player banks are i would imagine three of the four biggest banks absolutely

just basically j.p. morgan goldman sachs i mean it's not just the u.s. it's the three biggest billion banks in london in london from both sides and bearing in mind there are six billion banks clear the c.l. which is the london clearing bank system which is basically six billion banks pretty much all of those control what's going on they clear everything in london every day but basically so you've got now or this run so what happens is the fed steps in and says look we rather than expose this whole collapse and that and also on top of it the whole fear fear system being in collapse what will do is withdraw the provide bullion to the market so borrow it and we're happy to continue to read hypothecate what we've got which is already leverage as you say people are asking for their bullion bank is already a problem so what they do is they see backwardation they go the only solution that we can see short term is to dump the futures price in other words they provide so

much synthetic supply into the paper markets of the comix paper markets that we drop four hundred dollars well here we go full circle four hundred dollars lower where are we again where exactly at the point where we were when a.b.m. member when. down except for the price is four hundred dollars cheaper although we kinds of blown out g.l.d. is already dumped what it's going to dump so we're all we've got we're in even worse or rather the central banks or even worse situation now because what was on anticipated andrew correct me if i'm wrong but when the price dropped from sixteen hundred to twelve hundred by dumping paper onto the model market it increased the demand for physical in asia so that it set so they were hoping that a lot of gold have come into the market physical gold by manipulating the paper market because the paper market is the tail that wags the physical market so by dumping in the paper market people are going to sell their physical back end and

there's a lot of media press bull markets over get out done so what happened was the opposite in asia people lining up outside the door to buy physical gold so the central banks who were dumping that gold to fit create that suppressed price are now short gold and now sense they are the physical demand has not gone anywhere but up they then are in a position of having to come back in to satisfy the physical demand by buying physical again right so it gets back to this point where near and backwardation right it which is it getting worse every day it's got so much worse before we didn't have the go forward offer rates negative you know that was it didn't actually cost a premium for the putting banks at the time to to to to actually lend the bullion so essentially what we've got here it's all right to buy that so essentially what we've got here is a worse situation if i liken it to the fact thirteen years ago when gordon brown bailed out goldman sachs by creating that by dumping all of being pretty britain's

gold but andrew you've done it again and everyone is thinking now it was watching the show especially in the u.k. as they were tall the garden brown saw all britain's gold four hundred tons sixty percent of britain sovereign gold for reasons other than. in bailing out goldman sachs but it turns out looking through the record in retrospect that in fact that's exactly what he did and vice they've lost i think over a trillion and not trillion but the huge value in appreciation from gold so it's a just review we've got about a minute half left here very interesting stuff review gordon brown bailing out goldman sachs by selling britain sovereign gold take it away it's two hundred fifty bucks then where we know it's twelve hundred bucks now thirteen hundred bucks right now so we are back in a position where gold is almost a thousand dollars higher than it was and yet we've got the same problem again so and there's no who willingly because goldman sachs got caught short dumping paper

gold absolutely so then the bank of england bailed him out by giving the bell and now we find out for miles mcleod was on ty's report just recently saying that bank of england is thirteen hundred tons have gone missing in you're saying if i connect all the dots year that was sold into the market to take care of these other bullion banks including goldman doing the exact same thing all over again doping paper money hoping that they would get people did scare out of the gold but instead they did the opposite they were physical gold on the bank of england is as a liability here a huge liability correct of these billion banks they're going to be insolvent yes or no yes or no and the bank of england has to step in on a daily basis fixes and make up any shortfall out of the six hundred tons of gold cleared by the o.p.m. c.l. every day and the five thousand tonnes of silver incredible amounts but that's what trades through the b.m.a. every day they step in when people actually have the audacity to offer their physical this discount the bank of ling has to england has to step in and provide

that bullion on a short term basis well in the bank of england and the treasury and george osborne when they failed to match the books at the end of the day and there's left over doesn't that just get through the circuitous nature of these inciting deal doesn't just end up on the debt of the u.k. absolutely and they're going to stroke an electronic check. and they're going to pay everyone off and anyone that hasn't got a physical the reason i don't offer trudging is the day that you get settled in cash will be the day gaps up one hundred two hundred three hundred dollars. three right everywhere thanks so much for being on the pass reports always a pleasure. and that's going to do it for this edition of the kaiser report with may guys or and stacy herbert i'd like to thank our guest andrew maguire if you like just get in touch tweet us at kaiser report until next time ask either saying by zero. zero.

zero four. he has. to.

do live on one hundred thirty three bucks a month for food i should try it because you know how fabulous. i mean. i really feel really messed up. and we all are installed totally appalled a little worse for the little. white house to give it to a radio guy and for a minute. i want. to give you never seen anything like this i'm telling. you guys i'm abby martin and this is breaking the set on today's episode of corrupt american cops we go.